Charles Schwab Bank Launches Pledged Asset Mortgage Homebuyers Can Leverage Investments for Home Purchase Without

Liquidating Assets

    SAN FRANCISCO, Oct. 25 /PRNewswire-FirstCall/ -- Further expanding its
 line of integrated banking products, Charles Schwab Bank today introduced
 Schwab Pledged Asset Mortgage, a new product that enables borrowers to use
 their stock portfolio as collateral for buying a home.
     Schwab Pledged Asset Mortgage leverages eligible securities in a client's
 investment portfolio as an additional guarantee for a mortgage loan, rather
 than necessitating the sale of stock for a down payment. Applicants must have
 at least $250,000 in assets and meet other requirements to qualify.(i)
     "Our clients have told us they want to be able to buy a home without
 having to liquidate assets and alter their investment strategy -- and we've
 responded," said Richard Musci, Chief Lending Products Officer Charles Schwab
 Bank. "Schwab Pledged Asset Mortgage can be a valuable tool for investors
 looking to leverage stock investments to purchase a second home, retirement
 property or help their children with a down payment on a first home."
     Schwab Pledged Asset Mortgage provides up to 100 percent home financing.
 Upon approval of the mortgage and corresponding Pledged Asset Account, the
 prescribed amount of eligible securities are transferred into a separate
 Pledged Asset Account where the funds are held during the term of the loan.
 Clients have access to their Pledged Asset Account and can execute trades.(ii)
 Among the Schwab Pledged Asset Mortgage's benefits:
      --   Clients can avoid potential tax implications of liquidating
           investments to meet a down payment requirement.*
      --   Clients do not incur an interest rate premium or private mortgage
           insurance requirement since the pledged assets are made in lieu of a
           large downpayment.
      --   Choice of a range of adjustable-rate mortgages.
      --   Clients can continue to invest in eligible securities according to
           their preferred investment strategy, with certain restrictions.
     "At Charles Schwab Bank we strive to provide the highest level of service
 and products for our clients, and the Pledged Asset Mortgage is another
 example of how we are working towards a more integrated service model," said
 Musci.  "We encourage investors to talk with their financial advisor or call a
 Schwab Bank Loan Consultant to understand if Schwab Pledged Asset Mortgage is
 appropriate for their situation."(iii)
     The Pledged Asset Mortgage from Charles Schwab Bank may only be used for
 properties located in approved states.  For more information or to apply for a
 Charles Schwab Bank Pledged Asset Mortgage, consumers should speak with a
 Schwab Bank loan consultant, Schwab Private Client consultant or a Registered
 Investment Advisor working with Schwab Institutional or call 1-800-619-9937.
 Terms and conditions apply.
     About Charles Schwab Bank
     Headquartered in Reno, Nevada, Charles Schwab Bank, N.A. provides
 checking, savings, money market   and CD accounts, home mortgages, ATMs,
 credit cards and debit cards.  Deposits are FDIC-insured. Clients can access
 bank services at the banking office in Reno and by phone, mail or, and get information about the Schwab Bank Visa credit card
 from Schwab Investor Centers. Charles Schwab Bank, N.A. is a subsidiary of The
 Charles Schwab Corporation. Charles Schwab Bank, N.A. is an Equal Housing
     * Charles Schwab and Co., Inc. does not provide tax advice or specific
 information on tax issues.  Mortgage interest may not be deductible if tax-
 exempt obligations are pledged as additional collateral. Your clients should
 consult a tax advisor regarding the deductibility of mortgage interest and
 other tax consequences or benefits.
     Loans are subject to credit and property approval.  Some restrictions may
 apply.  Property and hazard insurance may be required.  Loan terms are subject
 to change without notice.
     All the content contained in this material was prepared by Charles Schwab
 Bank, N.A. (Member FDIC). Nothing herein is or should be interpreted as an
 obligation to lend. Loans are subject to credit approval. Some restrictions
 may apply. Charles Schwab Bank, N.A. and Charles Schwab & Co., Inc., are
 affiliates of each other and are both subsidiaries of the Charles Schwab
 Corporation. Charles Schwab    & Co., Inc., a registered broker-dealer and
 SIPC member, allows Charles Schwab Bank, N.A. to provide information about its
 products   as a convenience to Charles Schwab & Co., Inc.'s clients.  Products
 offered by Charles Schwab & Co. are not insured by the FDIC and are not
 deposits or obligations of, or guaranteed or endorsed by Charles Schwab Bank,
 N.A., and are subject to investment risk    including possible loss of
 principal. Charles Schwab & Co., Inc., does not solicit, offer, endorse,
 negotiate or originate any mortgage loan products, and is neither a licensed
 mortgage broker nor a licensed mortgage lender. Rates and terms are subject to
 change without notice.  Charles Schwab Bank, N.A. is not acting or registered
 as a securities broker-dealer or investment advisor.
     Charles Schwab Bank, N.A. Equal Housing Lender (Member FDIC).
      (i)       To qualify for the Schwab Pledged Asset Mortgage, clients must
                meet certain loan requirements.  Securities pledged must be
                held in an account at Charles Schwab & Co, Inc.  In addition to
                holding liquid assets greater than $250,000, clients cannot
                pledge more than 60 percent of their liquid assets and cannot
                pledge retirement assets or volatile securities such as options
                and low-value stocks
      (ii)      Certain trading restrictions may apply
      (iii)     The NASD identifies the following risks associated with a
                Pledged Mortgage and Pledged Asset Account.
                --   Even after you obtain your mortgage, you may be required
                     to deposit additional securities or cash to meet a
                     maintenance call if the value of the securities you
                     pledged falls below the minimum required.
                --   Schwab Bank may force the sale of securities in your
                     account to meet a maintenance call or if the bank
                     reasonably determines that an adverse effect upon the
                     value of, or its interest in, the collateral is imminent,
                     and may do so without contacting you.
                --   You are not entitled to choose which securities in your
                     account are sold, or an extension of time, to meet a
                     maintenance call.
                --   In the case of a Pledged Asset Mortgage, if you default on
                     your mortgage, you could lose both your house and the
                     securities you pledge.

SOURCE Charles Schwab Bank

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